An expenditure of Php is made to modify a material a small job shop. This modification will result in first-year sav a second-year savings of Php 200,000, and a savings of Ph thereafter. How many years must the system last if an 18% r irod? The cu in tail for this ich hon hac

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An expenditure of Php 1,000,000 is made to modify a material-handling system in
a small job shop. This modification will result in first-year savings of Php 100,000,
a second-year savings of Php 200,000, and a savings of Php 250,000 per year
thereafter. How many years must the system last if an 18% return on investment
is required? The system is tailor made for this job shop and has no market (salvage)
value at any time.
Transcribed Image Text:An expenditure of Php 1,000,000 is made to modify a material-handling system in a small job shop. This modification will result in first-year savings of Php 100,000, a second-year savings of Php 200,000, and a savings of Php 250,000 per year thereafter. How many years must the system last if an 18% return on investment is required? The system is tailor made for this job shop and has no market (salvage) value at any time.
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